2009 Bullion & Business Recap

Gold futures ended 2009 with their ninth straight yearly increase, soaring 24 percent for the year in New York. It ended up 27.6 percent in the London Fixing. The yellow metal’s direction throughout was mostly dictated by a weaker US dollar. And for the most part, silver and platinum followed gold.

New York crude oil finished the year higher, surging 78 percent to mark the biggest gain since 1999.

While US stocks closed out the last trading day of 2009 lower, for the year the Dow jumped 18.8 percent, the S&P soared 23.4 percent, and the Nasdaq surged 44.0 percent.

Precious metals closing year prices follow:

In London Fix bullion weekly prices, gold fell 0.05 percent and silver declined 1.9 percent while platinum gained 0.7 percent. Gold was fixed at $1,104.00 an ounce, which was 50 cents lower than last week. Silver closed to $16.99 an ounce, falling 33 cents for the week but surging 57.5 percent in 2009. Platinum ended at $1,466.00 an ounce, rising $10 for the week and soaring 63.1 percent in 2009.

In New York metals, gold lost 0.8 percent, silver fell 3.4 percent and platinum ended down 0.5 percent. Gold for February delivery finished the year at $1,096.20 for a weekly loss of $8.60. Silver futures for March delivery ended at $16.85, plunging 60 cents on the week but jumping 49 percent in 2009. Platinum for January delivery closed to $1,460.00, falling $7.90 on the week but rising 55 percent in 2009.

Notable bullion quotes follow:

"In a nice bookend to the year, it appears that 2009 will end much the way it started in the financial markets, a dollar story," Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm, said on MarketWatch. "For gold the catalyst in 2010 will be inflationary pressures."

"The purchasing power of all currencies is being eroded," James Turk, the founder of Jersey, Channel Islands-based GoldMoney.com, said on Bloomberg. "I look at the real price of goods and I see hyperinflation for the dollar in the not-too-distant future. That means a declining value of the dollar and higher gold prices."

"Year-end book-squaring continued during the overnight hours, this time in favor of gold, oil, and the euro for a change, as a rather large wave of dollar selling hit the market and brought the US currency to just under 77.50 on the trade-weighted index," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Bargain hunting by locals over in India helped support the move to higher ground in gold."

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

London Fix Charts: Silver, Gold and Platinum
(Dec 24 – 31)

The London Fix is one of the most used bullion quotes around the world. The London AM fix for gold and platinum begins at 10:30am GMT (5:30am in New York), and the PM fix begins at 3pm GMT (10am in New York). The London Fix for silver begins each business day at 12pm GMT (7am in New York).

London Fix Precious Metals Prices

(Dec 24 – 31)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-1.9%

-$0.33

$16.99

Gold

X

-0.05%

-$0.50

$1,104.00

Platinum

X

0.7%

$10.00

$1,466.00

(Dec 18 – 24)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

0.1%

$0.01

$17.32

Gold

Unchanged

0.0%

$0.00

$1,104.50

Platinum

X

2.8%

$39.00

$1,456.00

(Dec 11 – 18)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-1.1%

-$0.20

$17.31

Gold

X

-1.7%

-$19.50

$1,104.50

Platinum

X

-0.8%

-$12.00

$1,417.00

(Dec 4 – 11)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-7.0%

-$1.32

$17.51

Gold

X

-5.6%

-$66.25

$1,124.00

Platinum

X

-2.9%

-$43.00

$1,429.00

(Nov 27 – Dec 4)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

6.1%

$1.09

$18.83

Gold

X

2.0%

$23.75

$1,190.25

Platinum

X

3.4%

$48.00

$1,472.00

*Week change numbers are for Friday PM-Friday PM ( Unless a time is closed for holidays)

Weekly World Business News: Oil, Gasoline, and Stocks Prices

Oil prices climbed for the seventh straight day on Thursday to register the biggest annual gain in a decade. Cold weather was one cited factor in explaining an increaesd demand for heating fuels.

New York crude-oil for February delivery rose 8 cents, or 0.1 percent, to $79.36 a barrel, marking a 78% increase for the year. Prices hit an intraday high of $80.05.

"Part of this year’s gain is a correction from last year’s big drop," James Williams, an economist at energy research firm WTRG Economics, said on MarketWatch. "And there are some hopes for economic recovery, plus a fairly substantial cut by OPEC right at the beginning of the year."

"The proximity to $80 is attracting more speculators," Eugen Weinberg, an analyst with Commerzbank AG in Frankfurt, said on Bloomberg. "Events in Iran are also increasing the geopolitical premium. But I think prices are inflated at these levels and we’ll see a drop in early January."

Prices at the pump rose a half penny from Friday to Saturday. The national average for regular unleaded gasoline was $2.656 a gallon, according to a AAA fuel report. The price is 6.1 cents higher than last week and 2.3 cents more than a month back. Compared to a year ago, average gasoline prices have jumped 92.9 cents.

U.S. stocks declined Thursday "in a thinly-traded session on the last day of 2009 as investors mulled a better-than-expected report on initial jobless claims at the end of a big year on Wall Street," wrote Alexandra Twin of CNNMoney.

"The market reaction to the December payroll report on January 8th is likely to be an important indicator for market trends in" the first quarter of 2010, Brian Knapp head of U.S. portfolio strategy at Barclays Capital, wrote in a note to investors that was cited on MarketWatch.

In another perspectice for how far US stocks recovered in 2009, after finishing at a 12-year low on March 9, 2009, the Dow has improved by 59 percent and the S&P by 65 percent. The Nasdaq closed at a 6-year low on the same day and has climbed 79 percent since.

Thursday figures for the three major US indexes follow:

The Dow tumbled 120.46 points to close at 10,428.05.

The S&P slipped 11.32 points, closing at 1,115.10.

The NASDAQ fell 22.13 points to finish at 2,269.15.

And in other world markets:

The German DAX lost 54.12 points to close at 5,957.43.

The Paris CAC 40 added 0.83 points, to close at 3,936.33.

And the London FTSE 100 ended up 15.02 points to finish at 5,412.88.

Thursday’s session capped double-digit year-end gains for the major averages despite plunging earlier in the year. Jeanne Yurman reports. The following weekly business recap video from Reuters discuses this and US stocks:

Bullion and Business Articles

In related silver and gold news, interesting or quick-read articles from the week include:

Gold rises as dollar weakens, making ninth yearly gain – MarketWatch
Gold futures rose Thursday, ending 2009 with their ninth consecutive yearly gain as a weaker U.S. dollar increased gold’s investment appeal. On the Comex division of the New York Mercantile Exchange, the most actively traded February gold contract rose $3.70, or …

Gold Climbs, Capping Ninth Annual Gain, on Currency Outlook – Bloomberg
Gold futures rose, capping the ninth straight annual gain, on speculation that the dollar will extend a slump, spurring demand for the metal as an alternative investment. Silver had the biggest yearly increase since 1979. Gold advanced 24 percent this year as government …

Many Happy Returns of Ye Year – Jon Nadler, Kitco
Year-end book-squaring continued during the overnight hours, this time in favor of gold, oil, and the euro for a change, as a rather large wave of dollar selling hit the market and brought the US currency to just under 77.50 on the trade-weighted index. Bargain hunting by locals over in India helped support the move to higher ground in gold, albeit the stand-out performer early this morning was …

2009 American Gold Eagles Lead US Mint’s Sales – CoinNews
If the United States Mint was hoping for strong Christmas week sales from Santa, unfortunately, they were disappointed. For the third straight week figures show significant drops in volume almost across the board for collector coins. Only a few meager entries managed a positive change, but the overall results are not too rosy. Of course, this time of year one would expect a lack of interest in the hobby with thoughts …

Silver Collector Coins Weaken, Eagles Soar – Silver Coins Today
The latest United States Mint sales report shows robust 2009 Silver Eagle bullion figures, but weakening numismatic silver coin demand. The bullion Silver Eagles just came off their most recent suspension on Dec. 7. Since then, and despite their allocated or rationed distribution, the US Mint has sold 2,687,500 to their small group of authorized dealers, marking the second best December for Silver Eagles since …

Fractional Gold Eagle End of Year Figures – CoinNews
2009 Fractional American Gold Eagle bullion coins are in the history books with leading sales figures, despite their late launch and quick sell out.Having only been released on Dec. 3, 2009, the coins in the fractional sizes of one-half ounce, one-quarter ounce, and one-tenth ounce weights recorded smashing release day sales — 345,000 were sold for a total of 58,000 ounces of gold …